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Labor Share Decline and Intellectual Property Products Capital

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  • Dongya Koh
  • Raül Santaeulàlia-Llopis
  • Yu Zheng

Abstract

We study the behavior of the US labor share over the past 65 years. We find that intellectual property products (IPP) capital accounts entirely for the observed decline of the US labor share, which is otherwise secularly constant for traditional capital (i.e., structures and equipment). The decline of the labor share reflects the fact that the US is undergoing a transition to a more IPP capital-intensive economy. This result has essential implications for the US macroeconomic model.

Suggested Citation

  • Dongya Koh & Raül Santaeulàlia-Llopis & Yu Zheng, 2016. "Labor Share Decline and Intellectual Property Products Capital," Working Papers 927, Barcelona Graduate School of Economics.
  • Handle: RePEc:bge:wpaper:927
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    More about this item

    Keywords

    labor share; intellectual property products; capital; 1999- and 2013-BEA revisions;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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